- Microsoft is in talks to invest $10 billion in ChatGPT-owner OpenAI as part of funding that will value the firm at $29 billion. According to Semafor, Microsoft will also get 75% of OpenAI's profits until it recoups its initial investment. After hitting that threshold, Microsoft would have a 49% stake in OpenAI, with other investors taking another 49% and OpenAI's nonprofit parent getting 2%.
- The software giant had in 2019 invested $1 billion in OpenAI, founded by Elon Musk and Sam Altman. Microsoft's cloud services arm also provides the computing power needed by the AI firm.
- A recent pitch by OpenAI to investors said the organization expects $200 million in revenue next year and $1 billion by 2024. OpenAI charges developers licensing its technology about a penny or a little more to generate 20,000 words of text, and about 2 cents to create an image from a written prompt.